News for hackers. Stuff that matters.

A comment on U.S. mortgage interest rates jump to 7.16%, highest since 2001. Parent comment

Re:U.S. mortgage interest rates jump to 7.16%, highest since... by tashoecraft on Wednesday October 26, 2022 @11:32AM (#33345279)
I've been looking at mortgages over the past couple of months, and putting 20% down has near no effect on my potential monthly payments.
[ Parent | on HN ]
Re:U.S. mortgage interest rates jump to 7.16%, highest since... by lotsofpulp on Wednesday October 26, 2022 @01:10PM (#33346592)
The difference for most conforming loans (sold to US government) is that less than 20% down payment requires property mortgage insurance (PMI), which should add to monthly payments compared to a 20% down mortgage.

Are you seeing PMI costs? Or are they being waived for you? Or is it a non conforming loan that does not require PMI? There’s a bunch of other possible reasons on this website.

https://www.redfin.com/blog/what-is-pmi-insurance/

[ Parent | on HN ]
Re:U.S. mortgage interest rates jump to 7.16%, highest since... by margalabargala on Wednesday October 26, 2022 @02:54PM (#33347808)
Based on what numbers? At a 6.6% loan, putting down 5% rather than 20% will increase your monthly payment by over 25%, on interest alone, ignoring PMI.
[ Parent | on HN ]